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<ul class="summary-list"><li>Hertz dropped as much as 12% Tuesday morning after posting a deeper-than-expected quarterly profit loss.</li><li>The rental-car giant is still facing challenges from a high-cost electric vehicle fleet.</li></ul><a target="_blank" href="https://markets.businessinsider.com/stocks/htz-stock">Hertz</a> shares plunged as much as 12% on Tuesday after the company turned in its fourth quarterly loss in a row. The earnings report highlighted the car-rental giant's inability to shake off a failed bet on Tesla vehicles.Hertz lost 68 cents per share in the third quarter, exceeding consensus expectations for a 46-cent loss. The declining residual value of its car fleet also cost Hertz a $1 billion non-cash impairment charge during the period.Although Hertz stock tumbled early, it stabilized mid-day, trading roughly 3% higher at $3.48 as of 1:05 p.m. ET in New York.According to the company's latest <a target="_blank" href="https://s204.q4cdn.com/384814028/files/doc_financials/2024/q3/Q3-2024-Earnings-Release-Final.pdf">press release</a>, vehicle depreciation has jumped significantly at a time when the firm is trying to rotate out high-capital-cost vehicles, such as Tesla's EVs.The rental giant once planned to make <a target="_blank" href="https://www.wordhippo.com/what-is/another-word-for/headbutt.html">25% of its fleet electric by the end of 2024</a> and, three years prior, <a target="_blank" href="https://www.businessinsider.com/tesla-hertz-deal-elon-musk-advertising-marketing-2021-10">pledged to purchase 100,000 Teslas</a> to meet this goal.That's since changed. Hertz has since <a target="_blank" href="https://www.businessinsider.com/ev-maintenance-repair-hidden-costs-ownership-hertz-tesla-2024-1">decided on downsizing</a> its EV fleet by <a target="_blank" href="https://www.bloomberg.com/news/articles/2024-04-25/hertz-reports-392-million-loss-as-it-unwinds-tesla-fleet-burden">30,000 vehicles</a>, having discovered that these cars depreciate quickly and come with high repair costs. Renters also <a target="_blank" href="https://www.businessinsider.com/renting-tesla-from-hertz-what-it-was-like-experience-2024-1">appeared indifferent</a> toward electric rentals, with customers requesting <a target="_blank" href="https://www.businessinsider.com/used-electric-vehicles-price-crash-gas-cars-ev-demand-tesla-2024-6">EVs less than expected</a>.That has cost the company quarterly losses across 2024. So far, Hertz's stock is down nearly 69% year-to-date.In the third quarter, revenue dropped 5% to $2.6 billion. Vehicle depreciation rose 89% to $547 a vehicle per month. But according to <a target="_blank" href="https://www.bloomberg.com/news/articles/2024-11-12/hertz-misses-estimates-as-losses-mount-from-failed-tesla-bet?sref=LspfQlRv">Bloomberg</a>, CEO Gil West told analysts that depreciation will normalize to about $300 in the future.

Hertz's failed Tesla bet keeps getting worse as weak earnings challenge its stock

<ul class="summary-list"><li>Reddit stock surged 42% Wednesday to trade at a record high after reporting a strong earnings beat.</li><li>Reddit's revenue jumped 68% from a year ago, partly helped by licensing deals with OpenAI and Google.</li></ul>Reddit stock soared 42% to close at an all-time high of $116.03 per share on Wednesday afternoon after the company reported a strong earnings beat.A few months ago, investors appeared wary of Reddit's ability to compete on AI. Now, the platform's AI licensing deals are helping fuel its biggest quarterly revenue growth in two years and driving its stock to new records. On Tuesday, the company reported net income of $29.9 million, flying past expectations of an $8.8 million loss. It marks just the third profitable quarter for the company.Reddit's revenue jumped 68% from a year ago to $348.4 million. Part of that huge jump comes from its strong suite of <a target="_blank" href="https://www.businessinsider.com/google-train-ai-model-crazy-subreddit-posts-reddit-licensing-deal-2024-2">licensing deals</a> with OpenAI and Google, which are reflected in the $33.2 million of "other revenue" for the third quarter.That revenue category grew 547% year over year and now accounts for over 9% of the company's overall revenue, up from less than 1% last year.The company's licensing deals allow AI giants to train their models on the platform, which has become an increasingly competitive landscape. CEO Steve Huffman previously said Reddit is well-positioned amid an intense <a target="_blank" href="https://www.businessinsider.com/reddit-ceo-platform-arms-race-ai-training-steve-huffman-2024-10">"arms race" for AI training</a>.The company is also innovating in AI via language translation, which it's piloting in French, Huffman said during the earnings call. The move has helped drive more users to the site, he said."This quarter, machine translation drove four times more users than last quarter, and based on the success we've seen so far, we plan to expand machine translation to over 30 countries through 2025," Huffman added.The company added over 24 million daily users in the first three quarters of the year, already surging past the 15.6 million added in total last year, which has provided a huge boost to its ad business, too. Advertising revenue is forecast to surpass $1 billion for the year for the first time.Analysts say the company's ad and AI innovation are reasons for continued optimism on the stock."Revenue beat street expectations by 11%, dispelling fears around user growth sustainability, while displaying improved monetization via ad product innovation and AI-driven enhancements," Deutsche Bank analysts said in a Wednesday note."Looking forward, Reddit is expected to re-launch its Search tool in the coming quarters, which given the success of competing Gen AI-driven search tools, could drive another lever in monetization growth," they added, raising their price target on the stock from $85 to $115.Analysts are now expecting $113 million in profits next year, up from previous consensus estimates of just $17.5 million, according to FactSet data.

Reddit skyrockets 42% on strong earnings beat and AI-driven growth

<ul class="summary-list"><li>US stocks were down Wednesday morning before the week's high-profile earnings kicked off. </li><li> Snap, Advanced Micro Devices, and Alphabet report third-quarter results after the bell.</li></ul>US stocks dipped on Tuesday as traders waited for a slew of <a target="_blank" class="" href="https://www.businessinsider.com/big-tech-earnings-microsoft-amazon-apple-alphabet-meta-2024-10">corporate earnings</a> <a target="_blank" class="" href="https://markets.businessinsider.com/news/stocks/stock-market-outlook-tech-earnings-gdp-inflation-jobs-report-economy-2024-10">reports and economic data</a> releases. Major indexes edged lower and bond yields rose. The 10-year Treasury yield was up four basis points to 4.326%. Earnings season on Wall Street continues to gain steam, with <a target="_blank" class="" href="https://markets.businessinsider.com/stocks/snap-stock">Snap</a>, <a target="_blank" class="" href="https://markets.businessinsider.com/stocks/amd-stock">Advanced Micro Devices</a>, and Google parent <a target="_blank" class="" href="https://markets.businessinsider.com/stocks/googl-stock">Alphabet</a> among the major tech firms set to report earnings after the bell. The earnings deluge continues on Wednesday with <a target="_blank" class="" href="https://markets.businessinsider.com/stocks/meta-stock">Meta</a> and <a target="_blank" class="" href="https://markets.businessinsider.com/stocks/msft-stock">Microsoft</a> after the closing bell. Apple and Amazon will report on Thursday. Third-quarter earnings have been strong so far. Of the 37% of S&amp;P 500 companies that have released financials, 75% have beat earnings estimates, on par with the 10-year average, according to a <a target="_blank" class="" href="https://insight.factset.com/sp-500-earnings-season-update-october-25-2024">FactSet</a> analysis.This week's economic data, meanwhile, has the potential to reset the market's expectations for Fed rate cuts. Investors will digest GDP data for the third quarter on Wednesday, with estimates of 3.2% growth in the July through September period.On Friday, the October jobs report will be published. Economists expect 110,000 jobs were added last month, well below September's reading of 254,000. The Federal Reserve's November policy meeting will kick off a day after the presidential election. According to the CME Fedwatch tool, traders see a 96% chance central bankers will cut rates another 25 basis points, though recent hot data has also suggested the Fed may pause rate cuts at an upcoming meeting. "As we enter 2025, the case for skipping or pausing is likely to build. The Fed will be closer to estimates of neutral, a repeat of residual seasonality could lift inflation early next year, and the election outcome could add to hawkish risks for the Fed," Deutsche Bank analysts said in a note on Wednesday.Here's where US indexes stood shortly after the 9:30 a.m. opening bell on Tuesday:<ul><li><a target="_blank" href="https://markets.businessinsider.com/index/s&amp;p_500?utm_source=markets&amp;utm_medium=ingest%3Futm_source%3Dmarkets&amp;utm_medium=ingest&amp;utm_medium=ingest&amp;utm_source=markets">S&amp;P 500</a>: 5,802.94, down 0.35%</li><li><a target="_blank" href="https://markets.businessinsider.com/index/dow_jones?utm_source=markets&amp;utm_medium=ingest%3Futm_source%3Dmarkets&amp;utm_medium=ingest&amp;utm_medium=ingest&amp;utm_source=markets">Dow Jones Industrial Average</a>: 42,184.05, down 0.48% (-203.52 points)</li><li><a target="_blank" href="https://markets.businessinsider.com/index/nasdaq_composite?utm_source=markets&amp;utm_medium=ingest%3Futm_source%3Dmarkets&amp;utm_medium=ingest&amp;utm_medium=ingest&amp;utm_source=markets">Nasdaq composite</a>: 18,523.71, down 0.23%</li></ul>Here's what else is going on:<ul><li>Here's how a <a target="_blank" class="" href="https://www.businessinsider.com/market-impact-presidential-election-scenarios-trump-harris-stocks-bonds-crypto-2024-10?_gl=1*1qvmmw6*_ga*OTI1ODIwOTQ2LjE3MTYzOTg2NjU.*_ga_E21CV80ZCZ*MTczMDIwNTI2My40OTMuMS4xNzMwMjA4NDgwLjQuMC4w">Trump or Harris presidency</a> could impact your investments.</li><li>The <a target="_blank" class="" href="https://markets.businessinsider.com/news/stocks/election-betting-odds-trump-vs-harris-polymarket-kalshi-robinhood-2024-10">election-betting market</a> has exploded this presidential cycle.</li><li><a target="_blank" class="" href="https://markets.businessinsider.com/news/stocks/trump-media-djt-truth-social-election-madison-square-garden-rally-2024-10">Trump Media and Technology stock embarked on a meme-like rally</a> after Trump's Madison Square Garden event. The stock was halted for volatility on Tuesday morning. </li><li>The <a target="_blank" class="" href="https://markets.businessinsider.com/news/stocks/fed-rate-cuts-outlook-job-market-economy-fomc-jeremy-siegel-2024-10">Fed could pause rates at its next meeting</a>, if the October jobs report comes in strong, according to Wharton professor Jeremy Siegel.</li></ul>In commodities, bonds, and crypto:<ul><li><a target="_blank" href="https://markets.businessinsider.com/commodities/oil-price">West Texas Intermediate</a> crude oil ticked higher 0.67% to $67.83 a barrel. <a target="_blank" href="https://markets.businessinsider.com/commodities/oil-price">Brent crude</a>, the international benchmark, edged up 0.61% to $71.42 a barrel.</li><li><a target="_blank" href="https://markets.businessinsider.com/commodities/gold-price">Gold</a> was higher by 0.47% to $2,754.48 an ounce.</li><li>The 10-year Treasury yield climbed five basis points to 4.333%.</li><li><a target="_blank" href="https://markets.businessinsider.com/currencies/btc-usd">Bitcoin</a> rose 3.25% to $71,152.</li></ul>

Stock market today: Indexes dip ahead of mega-cap tech earnings

<ul class="summary-list"><li>US stocks jumped on Monday as investors anticipate key earnings and economic data this week.</li><li>Major tech firms like Meta, Microsoft, and Apple will report third-quarter earnings.</li></ul>US stocks moved higher on Monday to kick off <a target="_blank" class="" href="https://markets.businessinsider.com/news/stocks/stock-market-outlook-tech-earnings-gdp-inflation-jobs-report-economy-2024-10">a pivotal week of earnings and economic data.</a>More than 90 <a target="_blank" class="" href="https://markets.businessinsider.com/index/s&amp;p_500">S&amp;P 500</a> companies are set to report results this week, and investors will be keenly focused on third-quarter updates from <a target="_blank" class="" href="https://markets.businessinsider.com/stocks/meta-stock">Meta Platforms</a>, <a target="_blank" class="" href="https://markets.businessinsider.com/stocks/msft-stock">Microsoft</a>, <a target="_blank" class="" href="https://markets.businessinsider.com/stocks/AAPL-stock">Apple</a>, <a target="_blank" class="" href="https://markets.businessinsider.com/stocks/amzn-stock">Amazon</a>, and <a target="_blank" class="" href="https://markets.businessinsider.com/stocks/googl-stock">Alphabet</a>.Combined, these five mega-cap tech giants are worth about $12 trillion."The busiest week is ahead of us, with a shift from cyclicals to AI / mega-cap Tech. AI monetization is in focus and has been spotty at best. But Tech CEOs have told us that the biggest risk is underinvesting thus AI capex could drive sales for Tech but also for the broader market," Bank of America's Savita Subramanian said in a Monday note.So far, 37% of S&amp;P 500 companies have reported earnings results. Of those companies, 78% beat profit estimates by a median of 6%, while 58% beat revenues estimates by a median of 2%, according to data from Fundstrat.It's a big week for economic data as well, with third-quarter GDP to be released Wednesday morning. The Atlanta Fed's GDPNow Tracker suggests growth of 3.3% in the quarter, while economists expect growth of 3.2%.Investors will also get a look into inflation with the release of the PCE index on Thursday, which is the Federal Reserve's preferred inflation gauge.According to economist estimates, the year-over-year PCE Index is expected to be 2.1%, a slight decrease from last month's reading of 2.2%.Finally, investors will turn their attention to the October jobs report on Friday. Economists expect 110,000 jobs added to the economy last month, a big decline from the September employment report, which came in hot with 245,000 new jobs.From there, investors will be hyper-focused on the Presidential election next week, which will be followed by the Fed' next policy meeting on November 6-7. Here's where US indexes stood at the 4:00 p.m. closing bell on Monday:<ul><li><a target="_blank" href="https://markets.businessinsider.com/index/s&amp;p_500?utm_source=markets&amp;utm_medium=ingest%3Futm_source%3Dmarkets&amp;utm_medium=ingest&amp;utm_medium=ingest&amp;utm_source=markets">S&amp;P 500</a>: 5,823.56, up 0.27% </li><li><a target="_blank" href="https://markets.businessinsider.com/index/dow_jones?utm_source=markets&amp;utm_medium=ingest%3Futm_source%3Dmarkets&amp;utm_medium=ingest&amp;utm_medium=ingest&amp;utm_source=markets">Dow Jones Industrial Average</a>: 42,387.57, up 0.65% (+273.17 points)</li><li><a target="_blank" href="https://markets.businessinsider.com/index/nasdaq_composite?utm_source=markets&amp;utm_medium=ingest%3Futm_source%3Dmarkets&amp;utm_medium=ingest&amp;utm_medium=ingest&amp;utm_source=markets">Nasdaq composite</a>: 18,567.19, up 0.26% </li></ul>Here's what else is going on:<ul><li><a target="_blank" class="" href="https://markets.businessinsider.com/news/stocks/trump-media-djt-truth-social-election-madison-square-garden-rally-2024-10">Trump Media stock soared on Monday following former President Donald Trump's rally at Madison Square Garden.</a></li><li><a target="_blank" class="" href="https://markets.businessinsider.com/news/commodities/oil-prices-today-israel-strike-iran-production-brent-wti-crude-2024-10">Oil prices plunged more than 6% after Israel's attack against Iran over the weekend avoided oil facilities.</a></li><li><a target="_blank" class="" href="https://markets.businessinsider.com/news/stocks/stock-market-prediction-sp500-outlook-future-returns-goldman-sachs-forecast-2024-10">4 charts back up Goldman Sachs' prediction of a decade of low returns in the stock market.</a></li><li><a target="_blank" class="" href="https://www.businessinsider.com/market-impact-presidential-election-scenarios-trump-harris-stocks-bonds-crypto-2024-10">Here's what is at stake for your investments in next week's Presidential election.</a></li><li><a target="_blank" class="" href="https://markets.businessinsider.com/news/commodities/gold-price-record-high-became-etf-interest-rates-trump-costco-2024-10">Gold has become one of the world's hottest investments as it outperforms the S&amp;P 500. Here's why.</a></li><li><a target="_blank" class="" href="https://www.businessinsider.com/trump-deportation-immigration-policy-election-housing-home-prices-construction-costs-2024-10">Donald Trump's proposed immigration crackdown could make housing more expensive by depleting the construction workforce.</a></li></ul>In commodities, bonds, and crypto:<ul><li><a target="_blank" href="https://markets.businessinsider.com/commodities/oil-price">West Texas Intermediate</a> crude oil plunged 5.54% to $67.80 a barrel. <a target="_blank" href="https://markets.businessinsider.com/commodities/oil-price">Brent crude</a>, the international benchmark, was lower by 5.50% to $71.87 a barrel.</li><li><a target="_blank" href="https://markets.businessinsider.com/commodities/gold-price">Gold</a> was flat at $2,754.50 an ounce.</li><li>The 10-year Treasury yield rose 3 basis points to 4.274%.</li><li><a target="_blank" href="https://markets.businessinsider.com/currencies/btc-usd">Bitcoin</a> increased 2.49% to $69,638.</li></ul>

Stock market today: Indexes gain as investors brace for key tech earnings

<ul class="summary-list"><li>US stocks traded mixed on Tuesday, with the tech sector rallying ahead of key earnings reports.</li><li>The S&amp;P 500 and Nasdaq ended the day in the green, with the tech-heavy Nasdaq hitting a fresh record.</li></ul>US stocks traded mixed on Tuesday, with the Nasdaq Composite rising to a fresh record as traders looked ahead to high-profile earnings reports. The tech-heavy index and the S&amp;P 500 finished the day in the green, while bond yields wobbled.Shares of <a target="_blank" class="" href="https://markets.businessinsider.com/stocks/googl-stock">Alphabet</a> and <a target="_blank" class="" href="https://markets.businessinsider.com/stocks/snap-stock">Snap</a> rose 1%, while <a target="_blank" class="" href="https://markets.businessinsider.com/stocks/amd-stock">Advanced Micro Devices </a>popped 3% as investors awaited earnings after the closing bell.Shares of <a target="_blank" class="" href="https://markets.businessinsider.com/stocks/msft-stock">Microsoft</a> also rose 1%, while <a target="_blank" class="" href="https://markets.businessinsider.com/stocks/meta-stock">Meta</a> shares climbed 2% as traders anticipated their <a target="_blank" class="" href="https://markets.businessinsider.com/news/stocks/meta-q3-earnings-preview-meta-stock-price-ai-growth-guidance-2024-10">financials</a> on Wednesday. <a target="_blank" class="" href="https://markets.businessinsider.com/stocks/aapl-stock">Apple</a>, which held mostly steady, is on deck to report on Thursday.Corporate profits have come in strong so far for the quarter. The S&amp;P 500 is on track to post a net profit margin of at least 12% for the reporting period, which would mark the second straight quarter it's done so, according to a <a target="_blank" class="" href="https://insight.factset.com/sp-500-reporting-net-profit-margin-of-at-least-12-for-the-2nd-straight-quarter">FactSet</a> analysis.Traders are looking to a <a target="_blank" class="" href="https://markets.businessinsider.com/news/stocks/stock-market-outlook-tech-earnings-gdp-inflation-jobs-report-economy-2024-10">big few weeks</a> for markets, with third-quarter GDP set to be published Wednesday and the October jobs report due out Friday. The Fed is due to make its next rates decision next week, a day after the presidential election. Some doubts linger over whether the Fed will take interest rates as low as some investors initially hoped. Markets are pricing in a 53% chance rates will stay within 50 basis-points of their current target range at the Fed's January meeting, up from 0% odds priced in a month ago, according to the <a target="_blank" class="" href="https://www.cmegroup.com/markets/interest-rates/cme-fedwatch-tool.html">CME FedWatch tool</a>.Here's where US indexes stood shortly after the 9:30 a.m. opening bell on Tuesday:<ul><li><a target="_blank" href="https://markets.businessinsider.com/index/s&amp;p_500?utm_source=markets&amp;utm_medium=ingest%3Futm_source%3Dmarkets&amp;utm_medium=ingest&amp;utm_medium=ingest&amp;utm_source=markets">S&amp;P 500</a>: 5,832.92, up 0.16% <a target="_blank" href="https://markets.businessinsider.com/index/dow_jones?utm_source=markets&amp;utm_medium=ingest%3Futm_source%3Dmarkets&amp;utm_medium=ingest&amp;utm_medium=ingest&amp;utm_source=markets">Dow Jones Industrial Average</a>: 42,233.05, down 0.36% (-154.52 points)</li><li><a target="_blank" href="https://markets.businessinsider.com/index/nasdaq_composite?utm_source=markets&amp;utm_medium=ingest%3Futm_source%3Dmarkets&amp;utm_medium=ingest&amp;utm_medium=ingest&amp;utm_source=markets">Nasdaq composite</a>: 18,712.75, up 0.78% </li></ul>Here's what else is going on:<ul><li>A hint in <a target="_blank" class="" href="https://markets.businessinsider.com/news/stocks/stock-market-earnings-outlook-q3-bottom-demand-manufacturing-election-bofa-2024-10?_gl=1*gr9ay9*_ga*OTI1ODIwOTQ2LjE3MTYzOTg2NjU.*_ga_E21CV80ZCZ*MTczMDIyMjUxNS40OTYuMS4xNzMwMjIzMTMxLjguMC4w">S&amp;P 500 earnings calls</a> suggests that corporate profits are about to boom, Bank of America says.</li><li>Here's what Wall Street is expecting for <a target="_blank" class="" href="https://markets.businessinsider.com/news/stocks/meta-q3-earnings-preview-meta-stock-price-ai-growth-guidance-2024-10?_gl=1*i0lfm3*_ga*OTI1ODIwOTQ2LjE3MTYzOTg2NjU.*_ga_E21CV80ZCZ*MTczMDIyMjUxNS40OTYuMS4xNzMwMjIzMTEyLjI3LjAuMA..">Meta's third-quarter earnings report</a>.</li><li>The Fed is likely to disappoint markets with <a target="_blank" class="" href="https://www.businessinsider.com/fed-cut-rates-inflation-powell-blackrock-ceo-larry-fink-2024-10">just one more rate cut this year</a>, according to BlackRock's Larry Fink.</li></ul>In commodities, bonds, and crypto:<ul><li><a target="_blank" href="https://markets.businessinsider.com/commodities/oil-price">West Texas Intermediate</a> crude oil dipped 0.22% to $67.23 a barrel. <a target="_blank" href="https://markets.businessinsider.com/commodities/oil-price">Brent crude</a>, the international benchmark, held steady at $70.74 a barrel.</li><li><a target="_blank" href="https://markets.businessinsider.com/commodities/gold-price">Gold</a> rose 1.13% to $2,772.63 an ounce.</li><li>The 10-year Treasury yield traded mostly event at 4.274%.</li><li><a target="_blank" href="https://markets.businessinsider.com/currencies/btc-usd">Bitcoin</a> popped 5.84% to $73,279.</li></ul>

Stock market today: Nasdaq closes at a record ahead of key tech earnings

<ul class="summary-list"><li>Amazon rose as much as 7.6% on Friday, its biggest intraday gain since early February.</li><li>The stock surge was driven by better-than-expected third-quarter earnings, as well as a strong outlook.</li></ul><a target="_blank" href="https://markets.businessinsider.com/stocks/amzn-stock">Amazon</a> stock saw its best day in nine months on Friday.It climbed as much as 7.6% to $200.50, its steepest intraday gain since Feb. 2, after a strong third-quarter earnings report. Shares traded around $199 as of 12:30 p.m. in New York, less than 1% from all-time closing highs set in July.The tech titan <a target="_blank" href="https://www.businessinsider.com/amazon-stock-earnings-report-call-live-updates-2024-10">beat estimates</a> for both revenue and earnings-per-share, led by strength in cloud computing and cost-efficiency efforts. It also forecasted fourth-quarters sales in line with Wall Street expectations.In a turnaround from last year's record low sales growth, Amazon Web Services — the firm's AI-driven cloud platform — maintained stable momentum. Cloud revenues rose 19%, and CEO Andy Jassy indicated that Amazon's blowout $75 billion investment for 2025 will largely benefit AWS.During the firm's earnings call, Jassy explained that AI was driving the investment boost.He expressed that the technology is "a really unusually large, maybe once-in-a-lifetime type of opportunity. And I think our customers, the business, and our shareholders will feel good about this long term; that we're aggressively pursuing it."The company's cost cutting efforts have allowed the firm to pursue larger investments in these areas. With more efficiencies suggested ahead, Bank of America expects continued margin expansion through 2025.Amazon also delivered a retail beat, despite low expectations. Although Wall Street was concerned that headwinds would weaken the firm's consumer base, its online store grew 7% year-over-year, outpacing consensus estimates of 4%.According to the bank, efficiencies in the cost of servicing customers and ad growth helped drive the estimate-beat.

Amazon stock jumps most in 9 months as cost cuts, cloud spark earnings beat

<ul class="summary-list"><li>Wall Street analysts have high hopes for Meta's third-quarter earnings report on Wednesday. </li><li>Investors are keeping an eye on growth opportunities from AI. </li></ul>Wall Street analysts are upbeat ahead of Meta's third-quarter earnings report on Wednesday after the closing bell. Analysts generally expect positive revenue and earnings figures, thanks to the Facebook parent's AI ad optimization and the firm's <a target="_blank" class="" href="https://www.businessinsider.com/meta-reorganized-major-businesses-eliminated-roles-whatsapp-instagram-reality-labs-2024-10#:~:text=Meta%20has%20gone%20through%20several,%22efficiency%22%20would%20be%20permanent.&amp;text=As%20of%20March%2C%20Meta%20had,of%202022%2C%20BI%20previously%20reported.">sweeping cost cuts</a>, which included several rounds of layoffs in recent years and saw the firm backing away from some of its <a target="_blank" class="" href="https://www.businessinsider.com/mark-zuckerberg-cuts-spending-reality-labs-meta-report-2024-7">virtual reality projects</a>. Investors will be keeping a close eye on signs Meta can continue that growth, with the company <a target="_blank" href="https://affiliate.insider.com?h=4d0247c89eeec6faa3e72d5dee88e7c60fa1cc284a9699c5902f9e7a696dc773&amp;postID=6720fbaf3a35c2732d44c2bb&amp;postSlug=meta-q3-earnings-preview-meta-stock-price-ai-growth-guidance-2024-10&amp;site=bi&amp;u=https%3A%2F%2Fwww.theinformation.com%2Farticles%2Fmeta-develops-ai-search-engine-to-lessen-reliance-on-google-microsoft">reportedly</a> working on a new search tool that will surf the web for its AI chatbot. Wall Street is also looking for strong guidance for the current quarter, though analysts see potential for costs to come in higher than expected.Here's what analysts are saying ahead of the tech giant's earnings report. <h2 id="a8b0515c-9d85-4b4d-b1cf-6fce44552568">"Long-term story is as strong as ever": Bernstein</h2>Meta's long-run growth trajectory looks solid, according to Bernstein senior analyst Mark Shmulik. The stock is up 70% this year and is up 550% since bottoming in 2022."Near term risk and reward feels balanced," Shmulik wrote in a note, adding that the firm had a "perma-bull position on all things Meta.""But the long-term story is as strong as ever. As we look ahead we're constructive on the core business with an expected launch of ads on Threads, continued Reels ramp, more AI/Advantage+ ad tools offer investors top-line upside with a potential TikTok ban not currently priced in," he later added.The firm issued an "Outperform" rating on the stock and a $675 price target, implying 15% upside from current levels.<h2 id="dc7c6a08-8f5f-4c79-812c-4fa35a463037">"Uniquely well positioned to monetize search": JMP</h2>Meta's reported search engine could be a huge positive for the company, JMP analysts said in a note."Meta is uniquely well positioned to monetize search given its 200M+ active SMBs and 12M+ active advertisers," the firm wrote. "To that end, we believe Meta could offer a compelling commercial experience for search given its existing advertiser and SMB relationships while also using search intent signal to power its core advertising product on Facebook and Instagram."The search tool, though, could raise capital expenditures and costs, analysts said, possibly by more than investors are expecting. The firm issued an "Outperform" rating on the stock and a $635 price target, implying an 8% increase from current levels.<h2 id="3ae15c9a-d200-4592-ae15-3f19e716186b">"Top AI pick": Bank of America</h2>BofA analysts expect a "modest" earnings beat from the tech giant on Wednesday. They forecast the firm to report as much as $47.5 billion in revenue, which would represent an 18% year-over-year increase.Meta is a "top AI pick," the analysts added, pointing to a handful of tailwinds, like strong growth in Meta's AI-powered ads business, continued growth among younger users, and more AI growth opportunities in general."Our checks suggest Meta could see strength from: 1) new AI tools and new CRM integration driving higher ROI and incremental ad spend, 2) ramping messaging and Reels monetization, and 3) modest (100-200bps) political ad spend benefit," analysts wrote.The bank reiterated its "Buy" rating and $630 price target on the stock, implying 7% upside from current levels.<h2 id="2fdf202a-5a5b-4d15-a99d-48ed4f86b7d1">"Clear leader in social media": Morningstar</h2>Meta is a "<a target="_blank" href="https://affiliate.insider.com?h=8e3a91b023e95d600e3f54d96021a46339a33c3d1cf4d2a1d57384a4edc6bc4a&amp;postID=6720fbaf3a35c2732d44c2bb&amp;postSlug=meta-q3-earnings-preview-meta-stock-price-ai-growth-guidance-2024-10&amp;site=bi&amp;u=https%3A%2F%2Fwww.morningstar.com%2Fstocks%2Fraising-fair-value-meta-stock-ai-ad-leadership">clear leader</a>" on an "unmatched scale" in the social meaning space, Morningstar said in a recent note, pointing to the firm's 4 billion monthly active users across its applications.Investors though, are keeping hawkish eye over signs Meta can sustain its growth, according to Dave Sekera, Morningstar's chief US market strategist."The market is going to be listening for any update on capex spending, specifically on generative AI. I'd really like to hear from them more specifically about how and when they will be able to monetize that spending. That's the big question for Meta," Sekara said. "Other than that, I'll be listening for an update on growth and digital ads; they had a big benefit from ad spending in Temu and Shein over the past couple quarters, so the question is whether that growth will continue or will it start to slow."The firm previously issued a 3-star rating for the stock and a fair value of $560, implying 5% downside from current levels.<h2 id="b7a7a27b-67d4-4195-b1a2-3e4d05b93099">"A tough bar to surpass": CFRA Research</h2>Meta could face challenges ahead due to the risk that growth decelerated in the last quarter, CFRA Research said."META has a tough bar to surpass in upcoming Q4 2024 and Q1 2025. We estimate Q3 growth decelerated to 18% from 22% in Q2 and see further deceleration to 15% in Q4 2024 and 13% in Q1 2025," CFRA senior equity analyst Angelo Zino wrote. He added that the challenge in the coming quarters will be to keep up with strong growth compared to the year-ago quarters. "We think year-over-year deceleration is due to lapping strong growth from China-based advertisers as well as strong Reels impression growth from a year ago. Still, we think digital ad trends remain healthy, with broad-based health across most regions and verticals," Angelo Zino, a senior equity analyst at CFRA, wrote.CFRA raised its price target on the stock to $650 a share, implying 11% upside.

Wall Street is bullish on Meta earnings as analysts eye an AI boost for the tech titan

<ul class="summary-list"><li>Indexes fell for a second day on Thursday as a huge week for tech earnings shows mixed results.</li><li>Meta and Microsoft slid after slight earnings beats, and Amazon and Apple are set to report after market close.</li></ul>Indexes slid on Thursday, heading for a second day of declines as big tech earnings fail to impress investors so far.The S&amp;P 500 and Nasdaq both slid, and the Dow Jones Industrial Average lost over 200 points shortly after the opening bell.The drop comes amid a <a target="_blank" href="https://markets.businessinsider.com/news/stocks/stock-market-outlook-tech-earnings-gdp-inflation-jobs-report-economy-2024-10?_gl=1*lobd5h*_ga*MTY3OTgyNjg0MS4xNzIxMDE2MDM2*_ga_E21CV80ZCZ*MTczMDMxNTM4MS4zMzguMS4xNzMwMzE5NTU1LjYwLjAuMA..">packed week for earnings</a>, with several of the biggest tech stocks reporting third-quarter results.Microsoft and Meta reported earnings that beat estimates after the closing bell on Wednesday, but the shares of both tech giants slid on forward guidance. Microsoft declined more than 4% after it shared expectations for slower growth in its cloud business, while Meta shares lost over 2% after forecasting "significant" capital expenditures growth next year.Earlier in the week, <a target="_blank" class="" href="https://www.businessinsider.com/google-third-quarter-earnings-report-q3-2024-2024-10#:~:text=Google's%20parent%20company%2C%20Alphabet%2C%20released,AI%20products%2C%20the%20company%20said.">Alphabet's earnings</a> beat generated more enthusiasm among investors as CEO Sundar Pichai said the company's AI investments are "paying off."Investors are bracing for earnings from Apple and Amazon after market close today. They will be paying particularly close attention for <a target="_blank" class="" href="https://markets.businessinsider.com/news/stocks/apple-q4-earnings-preview-wall-street-ai-fuels-iphone-demand-2024-10">signs that AI is driving iPhone demand for Apple</a>, especially after the company rolled out its iOS 18.1 update earlier this week, and they expect a <a target="_blank" class="" href="https://www.businessinsider.com/amazon-earnings-preview-aws-consumer-spending-retail-ai-project-kuiper-2024-10">strong beat from Amazon</a>.Meanwhile, the personal-consumption expenditures index, the Fed's preferred inflation gauge, cooled to 2.1% year over year in September from 2.2% in August. That marks progress toward the Fed's 2% inflation target, but the core index—which excludes food and energy prices—came in hotter than expected at 2.7%.Jobless claims from last week fell by more than expected to 216,000, a 12,000 drop from the week prior. Economists had expected claims to come in at 230,000.Here's where US indexes stood shortly after the 9:30 a.m. opening bell on Thursday:<ul><li><a target="_blank" href="https://markets.businessinsider.com/index/s&amp;p_500?utm_source=markets&amp;utm_medium=ingest%3Futm_source%3Dmarkets&amp;utm_medium=ingest&amp;utm_medium=ingest&amp;utm_source=markets&amp;utm_medium=ingest&amp;utm_source=markets">S&amp;P 500</a>: 5,764.93, down 0.84% </li><li><a target="_blank" href="https://markets.businessinsider.com/index/dow_jones?utm_source=markets&amp;utm_medium=ingest%3Futm_source%3Dmarkets&amp;utm_medium=ingest&amp;utm_medium=ingest&amp;utm_source=markets&amp;utm_medium=ingest&amp;utm_source=markets">Dow Jones Industrial Average</a>: 41,943.67, down 0.47% (-198.87 points)</li><li><a target="_blank" href="https://markets.businessinsider.com/index/nasdaq_composite?utm_source=markets&amp;utm_medium=ingest%3Futm_source%3Dmarkets&amp;utm_medium=ingest&amp;utm_medium=ingest&amp;utm_source=markets&amp;utm_medium=ingest&amp;utm_source=markets">Nasdaq composite</a>: 18,372.58, down 1.25% </li></ul>Here's what else is going on:<ul><li><a target="_blank" class="" href="https://www.businessinsider.com/trump-harris-immigration-jobs-arizona-economy-mass-deportation-employment-wages-2024-10">Arizona is the epicenter of the debate</a> about how mass deportations under Trump would hit the US economy. </li><li>Bringing manufacturing back to the US is a <a target="_blank" class="" href="https://www.businessinsider.com/us-manufacturing-production-boom-economy-made-in-america-trade-war-2024-10">$10 trillion opportunity</a> for the economy, Morgan Stanley says.</li><li>Stocks are gripped by <a target="_blank" class="" href="https://markets.businessinsider.com/news/stocks/stock-market-outlook-election-impact-trump-harris-economy-ai-citi-2024-10?_gl=1*1sq6l9x*_ga*MTY3OTgyNjg0MS4xNzIxMDE2MDM2*_ga_E21CV80ZCZ*MTczMDM4MDA3NS4zMzkuMS4xNzMwMzgwNjUyLjM3LjAuMA..">"near-euphoric sentiment"</a> and the election may offer a chance to pull back, Citi says.</li><li>Nvidia stock is undervalued because AI companies <a target="_blank" class="" href="https://markets.businessinsider.com/news/stocks/nvidia-stock-undervalued-9-trillion-ai-spend-masayoshi-son-softbank-2024-10?_gl=1*l4g43y*_ga*MTY3OTgyNjg0MS4xNzIxMDE2MDM2*_ga_E21CV80ZCZ*MTczMDM4MDA3NS4zMzkuMS4xNzMwMzgwNzQwLjU5LjAuMA..">need to spend another $9 trillion</a> to achieve superintelligence, Softbank CEO says.</li></ul>In commodities, bonds, and crypto:<ul><li>Oil futures were up. <a target="_blank" class="" href="https://markets.businessinsider.com/commodities/oil-price?type=wti">West Texas Intermediate crude</a> rose almost 1% to $69.27 a barrel. <a target="_blank" href="https://markets.businessinsider.com/commodities/oil-price?utm_medium=ingest&amp;utm_source=markets">Brent crude</a>, the international benchmark, climbed 0.8% to $73.13 a barrel.</li><li><a target="_blank" href="https://markets.businessinsider.com/commodities/gold-price?utm_medium=ingest&amp;utm_source=markets">Gold</a> rose slipped almost 1% to $2,776.80 an ounce.</li><li>The 10-year Treasury yield rose two basis points to 4.292%.</li><li><a target="_blank" class="" href="https://markets.businessinsider.com/currencies/btc-usd">Bitcoin</a> edged up to $71,869.</li></ul>

Stock market today: Indexes drop as tech shares slide before Apple, Amazon earnings

<ul class="summary-list"><li>US stocks rise as key earnings and economic data are anticipated this week.</li><li>Major tech firms, including Amazon, Microsoft, Alphabet, and Apple, are set to report earnings.</li></ul>US stocks jumped on Monday ahead of what's shaping up to be a pivotal week for earnings and economic data.More than 90 <a target="_blank" class="" href="https://markets.businessinsider.com/index/s&amp;p_500">S&amp;P 500</a> companies are set to report results this week, and investors will be keenly focused on third-quarter updates from <a target="_blank" class="" href="https://markets.businessinsider.com/stocks/meta-stock">Meta Platforms</a>, <a target="_blank" class="" href="https://markets.businessinsider.com/stocks/msft-stock">Microsoft</a>, <a target="_blank" class="" href="https://markets.businessinsider.com/stocks/AAPL-stock">Apple</a>, <a target="_blank" class="" href="https://markets.businessinsider.com/stocks/amzn-stock">Amazon</a>, and <a target="_blank" class="" href="https://markets.businessinsider.com/stocks/googl-stock">Alphabet</a>.Combined, these five mega-cap tech giants are worth about $12 trillion.So far, 37% of S&amp;P 500 companies have reported earnings results. Of those companies, 78% beat profit estimates by a median of 6%, while 58% beat revenues estimates by a median of 2%, according to data from Fundstrat.In the oil market, crude prices plunged more than 6%, representing the biggest one-day decline since September 2022 after Israel's attack against Iran over the weekend avoided oil facilities.It's a big week for economic data as well, with third-quarter GDP set to be released Wednesday morning. The Atlanta Fed's GDPNow Tracker suggests growth of 3.3% in the quarter, while economists expect growth of 3.2%.Investors will also get a look into inflation with the release of the PCE index on Thursday, which is the Federal Reserve's preferred inflation gauge.According to economist estimates, the year-over-year PCE Index is expected to be 2.1%, a slight decrease from last month's reading of 2.2%.Finally, investors will turn their attention to the October jobs report on Friday. Economists expect 110,000 jobs added to the economy last month, a big decline from the September employment report, which came in hot with 245,000 new jobs.Here's where US indexes stood shortly after the 9:30 a.m. opening bell on Monday:<ul><li><a target="_blank" href="https://markets.businessinsider.com/index/s&amp;p_500?utm_source=markets&amp;utm_medium=ingest%3Futm_source%3Dmarkets&amp;utm_medium=ingest&amp;utm_medium=ingest&amp;utm_source=markets">S&amp;P 500</a>: 5,834.93, up 0.46% </li><li><a target="_blank" href="https://markets.businessinsider.com/index/dow_jones?utm_source=markets&amp;utm_medium=ingest%3Futm_source%3Dmarkets&amp;utm_medium=ingest&amp;utm_medium=ingest&amp;utm_source=markets">Dow Jones Industrial Average</a>: 42,414.07, up 0.71% (+299.67 points)</li><li><a target="_blank" href="https://markets.businessinsider.com/index/nasdaq_composite?utm_source=markets&amp;utm_medium=ingest%3Futm_source%3Dmarkets&amp;utm_medium=ingest&amp;utm_medium=ingest&amp;utm_source=markets">Nasdaq composite</a>: 18,634.68, up 0.59% </li></ul>Here's what else is going on:<ul><li><a target="_blank" class="" href="https://www.businessinsider.com/market-impact-presidential-election-scenarios-trump-harris-stocks-bonds-crypto-2024-10">Here's what is at stake for your investments in next week's Presidential election.</a></li><li><a target="_blank" class="" href="https://markets.businessinsider.com/news/commodities/gold-price-record-high-became-etf-interest-rates-trump-costco-2024-10">Gold has become one of the world's hottest investments as it outperforms the S&amp;P 500. Here's why.</a></li><li><a target="_blank" class="" href="https://www.businessinsider.com/trump-deportation-immigration-policy-election-housing-home-prices-construction-costs-2024-10">Donald Trump's proposed immigration crackdown could make housing more expensive by depleting the construction workforce.</a></li></ul>In commodities, bonds, and crypto:<ul><li><a target="_blank" href="https://markets.businessinsider.com/commodities/oil-price">West Texas Intermediate</a> crude oil plunged 6.39% to $67.19 a barrel. <a target="_blank" href="https://markets.businessinsider.com/commodities/oil-price">Brent crude</a>, the international benchmark, was lower by 6.05% to $71.45 a barrel.</li><li><a target="_blank" href="https://markets.businessinsider.com/commodities/gold-price">Gold</a> was lower by 0.21% to $2,748.80 an ounce.</li><li>The 10-year Treasury yield was flat at 4.240%.</li><li><a target="_blank" href="https://markets.businessinsider.com/currencies/btc-usd">Bitcoin</a> increased 1.46% to $68,936.</li></ul>

Stock market today: US stocks jump ahead of crucial week of earnings and data

<ul class="summary-list"><li>The S&amp;P 500 could see more than 20% earnings growth over the next two years, according to Goldman Sachs.</li><li>The bank highlighted Trump's proposed tax cuts for corporations as an upside risk to their EPS forecast.</li></ul>President-elect Donald Trump's tax cuts could boost S&amp;P 500 earnings by more than 20%, Goldman Sachs said.Strategists at the investment bank predicted S&amp;P 500 earnings per share were on track to rise around 20% over the next two years. Goldman's forecast for full-year 2024 S&amp;P 500 EPS is $241. That will be followed by an 11% EPS increase in 2025, and 7% EPS increase the following year to $288 a share, Goldman said.Yet, those targets could easily be surpassed if Trump <a target="_blank" class="" href="https://www.businessinsider.com/tax-cut-tariff-plan-outlook-presidential-election-scenarios-harris-trump-2024-10?utm_source=facebook&amp;utm_medium=social&amp;utm_campaign=business-sf">slashes taxes</a> for corporations, the investment bank said in a note on Friday, noting that the latest election results had increased the upside potential to their forecast. "Tax reform is an upside risk. President-elect Trump has campaigned on cutting the statutory domestic corporate tax rate to 15% from its current 21%. We estimate that each 1 percentage point reduction in the statutory domestic tax rate would boost S&amp;P 500 EPS by slightly less than 1%, all else equal" the firm wrote. Trump's move to loosen regulation in the financial sector could also bring additional earnings. Stocks <a target="_blank" class="" href="https://markets.businessinsider.com/news/stocks/trump-trade-us-presidential-election-dollar-treasuries-stocks-crypto-djt-2024-11">rallied sharply</a> after Trump secured his second term in office on Wednesday. Traders poured $20 billion into US stocks the day Trump's election victory was confirmed, marking the largest single-day stock-purchasing boom in five months, Bank of America said. Weekly flows to financial funds, meanwhile, hit $2.9 billion, the largest single-day inflow on record.Trump's plans to levy <a target="_blank" class="" href="https://www.businessinsider.com/trump-tariffs-hit-company-stock-profits-hardest-china-investing-manufacturing-2024-11">hefty tariffs,</a> though, is a risk to corporate earnings, Goldman Sachs said. Each five percentage point increase in the effective US tariff rate could reduce S&amp;P 500 EPS growth by as much as 2%. the strategists estimated. The firm pegged the odds that Trump would follow through with his 10%-20% blanket tariff on US imports at 40%."During the 2018-2019 trade conflict, companies were generally able to pass the costs of tariffs through to customers," strategists wrote, referring to <a target="_blank" href="https://www.businessinsider.com/trump-tariffs-china-trade-war-chinese-goods-2018-8">Trump's trade war</a> with China in his first term. "However, even if that dynamic were repeated, tariffs could potentially reduce earnings via weaker consumer spending, retaliatory tariffs on US exports, and increased uncertainty."Economists have flagged Trump's economic plan as <a target="_blank" class="" href="https://www.businessinsider.com/donald-trump-election-win-high-inflation-risk-tariffs-deportations-taxes-2024-11">inflationary</a> and said his policies, including his tariff plan, are likely to send <a target="_blank" class="" href="https://www.businessinsider.com/trump-tariffs-higher-inflation-fed-interest-rates-taxes-mortgage-rates-2024-11">interest rates higher</a>.Over the long term, Goldman is calling for a <a target="_blank" class="" href="https://markets.businessinsider.com/news/stocks/stock-market-outlook-sp500-future-returns-decade-forecast-goldman-sachs-2024-10">decade of lackluster returns for the S&amp;P 500</a>. That's partly due to higher interest rate expectations, strategists said in a note last month, as well as factors like <a target="_blank" class="" href="https://markets.businessinsider.com/news/stocks/stock-market-outlook-crazy-town-valuation-mania-sp500-barry-bannister-2024-11">stretched valuations</a> and high <a target="_blank" class="" href="https://www.businessinsider.com/sp500-outlook-next-decade-forecast-david-kostin-goldman-stocks-strategist-2024-11">market concentration</a>.

Trump's tax cuts could boost S&P 500 earnings by 20% over the next 2 years, Goldman Sachs says

<ul class="summary-list"><li>Indexes slipped on Wednesday led by a sell-off in chip stocks.</li><li>Alphabet rose after delivering a big earnings beat.</li></ul>US stock ended lower on Wednesday as encouraging tech earnings were eclipsed by a sell-off among semiconductor shares. <a target="_blank" href="https://markets.businessinsider.com/stocks/goog-stock">Alphabet's</a> <a target="_blank" href="https://www.businessinsider.com/google-third-quarter-earnings-report-q3-2024-2024-10#:~:text=Revenue%20from%20Google%20Cloud%20grew,%25%20in%20after%2Dhours%20trading.&amp;text=Alphabet%20and%20Google%20CEO%20Sundar,investments%20were%20%22paying%20off.%22">big earnings beat</a> helped send its stock up almost 3% in the session, but major indexes fell as <a target="_blank" href="https://markets.businessinsider.com/news/stocks/chipmakers-amd-smci-super-micro-stock-auditor-earnings-report-guidance-2024-10?_gl=1*1ys7uu1*_ga*MTMxNDIwNDI1Ni4xNjc1Njg3OTU4*_ga_E21CV80ZCZ*MTczMDMxNDE2OC43NzkuMS4xNzMwMzE4MDQ4LjYwLjAuMA..">chipmakers suffered losses.</a>AMD and Super Micro Computer led the rout. The former fell on weak fourth-quarter guidance, while Super Micro plummeted on news that its auditor resigned due to company concerns. AMD dropped almost 11%, while SMCI plunged 33%. However, investors have more big tech earnings to look forward to.Shares of <a target="_blank" href="https://markets.businessinsider.com/stocks/msft-stock?utm_medium=ingest&amp;utm_source=markets&amp;utm_medium=ingest&amp;utm_source=markets">Microsoft</a> and <a target="_blank" href="https://markets.businessinsider.com/stocks/meta-stock?utm_medium=ingest&amp;utm_source=markets&amp;utm_medium=ingest&amp;utm_source=markets">Meta</a> traded higher as traders anticipated their <a target="_blank" href="https://markets.businessinsider.com/news/stocks/meta-q3-earnings-preview-meta-stock-price-ai-growth-guidance-2024-10?utm_medium=ingest&amp;utm_source=markets&amp;utm_medium=ingest&amp;utm_source=markets">financial results</a> on after the closing bell. <a target="_blank" href="https://markets.businessinsider.com/stocks/aapl-stock?utm_medium=ingest&amp;utm_source=markets&amp;utm_medium=ingest&amp;utm_source=markets">Apple</a> and <a target="_blank" href="https://markets.businessinsider.com/stocks/amzn-stock?utm_medium=ingest&amp;utm_source=markets">Amazon</a> are on deck to report after the close on Thursday.Macroeconomic data released on Wednesday highlighted ongoing strength in the US economy, diluting concern that interest rates might need to drop quickly to propel growth.Third-quarter US real GDP came in <a target="_blank" href="https://www.businessinsider.com/gdp-gross-domestic-product-third-quarter-economy-2024-10?utm_medium=ingest&amp;utm_source=markets">at an annualized rate of 2.8%</a>, driven by a strong consumer. PCE, the Federal Reserve's preferred inflation gauge, reached 2.2% — close to the central bank's target rate of 2%."This is excellent on the GDP, particularly when you look at the consumer spending," economist Claudia Sahm told <a target="_blank" href="https://www.bloomberg.com/news/videos/2024-10-30/gdp-report-not-one-to-be-afraid-of-economist-claudia-sahm">Bloomberg TV</a>. "It's not just one quarter: we have now put together four quarters that are about three percent growth in consumer spending, inflation-adjusted. "The labor market also appears strong, as ADP hiring rose by its fastest rate in over a year. The data potentially sets the stage for another big nonfarm payrolls report on Friday, which will help inform the Fed's next move at its November 6-7 policy meeting. Here's where US indexes stood at the 4:00 p.m. closing bell on Wednesday:<ul><li><a target="_blank" href="https://markets.businessinsider.com/index/s&amp;p_500?utm_source=markets&amp;utm_medium=ingest%3Futm_source%3Dmarkets&amp;utm_medium=ingest&amp;utm_medium=ingest&amp;utm_source=markets&amp;utm_medium=ingest&amp;utm_source=markets&amp;utm_medium=ingest&amp;utm_source=markets">S&amp;P 500</a>: 5,813.67, down 0.33% <a target="_blank" href="https://markets.businessinsider.com/index/dow_jones?utm_source=markets&amp;utm_medium=ingest%3Futm_source%3Dmarkets&amp;utm_medium=ingest&amp;utm_medium=ingest&amp;utm_source=markets&amp;utm_medium=ingest&amp;utm_source=markets&amp;utm_medium=ingest&amp;utm_source=markets">Dow Jones Industrial Average</a>: 42,141.54, down 0.22% (-91.51 points)</li><li><a target="_blank" href="https://markets.businessinsider.com/index/nasdaq_composite?utm_source=markets&amp;utm_medium=ingest%3Futm_source%3Dmarkets&amp;utm_medium=ingest&amp;utm_medium=ingest&amp;utm_source=markets&amp;utm_medium=ingest&amp;utm_source=markets&amp;utm_medium=ingest&amp;utm_source=markets">Nasdaq composite</a>: 18,607.93, down 0.56% </li></ul>Here's what else is going on:<ul><li><a target="_blank" href="https://markets.businessinsider.com/news/stocks/stock-market-outlook-us-vs-canada-david-rosenberg-bull-rally-2024-10?_gl=1*w92gmg*_ga*MTMxNDIwNDI1Ni4xNjc1Njg3OTU4*_ga_E21CV80ZCZ*MTczMDMxNDE2OC43NzkuMS4xNzMwMzE1OTIyLjU5LjAuMA..">Top economist David Rosenberg says Canadian stocks look poised to outperform the S&amp;P 500.</a></li><li><a target="_blank" href="https://markets.businessinsider.com/news/stocks/nvidia-stock-undervalued-9-trillion-ai-spend-masayoshi-son-softbank-2024-10?_gl=1*15nw6jj*_ga*MTMxNDIwNDI1Ni4xNjc1Njg3OTU4*_ga_E21CV80ZCZ*MTczMDMxNDE2OC43NzkuMS4xNzMwMzE2MDk0LjQ0LjAuMA..">Nvidia is undervalued as $9 trillion is still needed for superintelligent AI,</a> SoftBank's CEO said.</li><li><a target="_blank" href="https://www.businessinsider.com/us-manufacturing-production-boom-economy-made-in-america-trade-war-2024-10">US industrial re-shoring could be a $10 trillion economic opportunity,</a> according to Morgan Stanley.</li></ul>In commodities, bonds, and crypto:<ul><li><a target="_blank" href="https://markets.businessinsider.com/commodities/oil-price?utm_medium=ingest&amp;utm_source=markets&amp;utm_medium=ingest&amp;utm_source=markets">West Texas Intermediate</a> crude oil jumped 2.38% to $68.81 a barrel. <a target="_blank" href="https://markets.businessinsider.com/commodities/oil-price?utm_medium=ingest&amp;utm_source=markets&amp;utm_medium=ingest&amp;utm_source=markets">Brent crude</a>, the international benchmark, climbed 2.31% at $72.76 a barrel.</li><li><a target="_blank" href="https://markets.businessinsider.com/commodities/gold-price?utm_medium=ingest&amp;utm_source=markets&amp;utm_medium=ingest&amp;utm_source=markets">Gold</a> inched up 0.59% to $2,797.6 an ounce.</li><li>The 10-year Treasury yield stayed essentially flat at 4.282%.</li><li><a target="_blank" href="https://markets.businessinsider.com/currencies/btc-usd?utm_medium=ingest&amp;utm_source=markets&amp;utm_medium=ingest&amp;utm_source=markets">Bitcoin</a> eased by 1.43% to $71,786.57</li></ul>

Stock market today: Indexes slide as chipmaker rout drags tech ahead of key earnings

<ul class="summary-list"><li>My bank has lowered the APY on my high-yield savings account by almost half a percent recently.</li><li>I'm not happy that my cash is generating less returns now, and I don't know what to do.</li></ul>It's never pleasant to receive an email from your bank informing you that the interest rate on your <a target="_blank" class="" href="https://www.businessinsider.com/personal-finance/banking/best-high-yield-savings-accounts-rates-right-now">high-yield savings account</a> is decreasing.Unfortunately, like many Americans happy to collect a robust yield on their savings, I've gotten three of these notifications in the last three months as the Federal Reserve has begun to lower interest rates. From August until the end of October, the annual percentage yield (APY) on my high-yield savings account has fallen from 4.6% to 4.2%.I opened this bank account almost two years ago, right after graduating from college. Back in 2023, with inflation still elevated, interest rates were at their highest levels since the Great Financial Crisis, and it seemed like most banks were offering near-5% yields on savings. After paying off my bills every month, I would put the remainder of my paycheck into my high-yield savings account and watch the number creep up.Now, it looks like the days of a 5% APY are in the past. In September, the Federal Reserve dished out a 50 basis-point rate cut, signifying the beginning of the end for high rates. Continuing this trend, the central bank's chair, Jerome Powell, announced a <a target="_blank" href="https://www.businessinsider.com/federal-reserve-cuts-interest-rates-quarter-point-powell-inflation-election-2024-11">25 basis-point cut</a> last week, and is expected to slash rates further in the months ahead.Is there anything I can do about the state of my savings account, or do I have to watch my yield erode away slowly? Curious, I asked three financial experts for their advice on this topic.As a famous politician once said, we didn't just fall out of a coconut tree. Context is important. Patti Black, a financial advisor at Savant Wealth Management, reminded me that the recent high interest rate environment is a marked departure from the last decade, where interest rates were near zero and there was no yield on cash to be found. So, while yields dropping from nearly 5% might seem like a tough pill to swallow for someone like me who just opened an account in the last couple of years, it's still a pretty good deal when you consider where rates have been in the past.I didn't have a bank account during the post-2008 zero-interest rate policy era, so this was helpful context to have. Perhaps my generation is indeed coddled — first by our parents and now by Jerome Powell's post-pandemic rate hikes.Black also suggested that I switch up my perspective. While a rate-cutting cycle means less return on my cash, it also means lower borrowing costs for a car loan or a mortgage, which is good news for the housing market.But there are other options for where I can have my money sit, Black said. Of course, one alternative is a <a target="_blank" href="https://www.businessinsider.com/cd-rates-certificate-deposit-high-interest-where-to-invest-now-2024-10">certificate of deposit</a> (CD), which is essentially a savings account that holds money at a fixed interest rate for a fixed period of time. CDs generally pay higher interest rates than savings and money market accounts in exchange for locking up your money for anywhere between three months to many years. However, my hands are a little tied. A well-known rule of thumb is to keep three to six months of living expenses available in your bank account as an emergency fund (read: liquid and highly accessible), so it's not a good idea to lock up money in my high-yield savings account for a prolonged period time. I could withdraw my money from the CD if needed, but I'd have to pay back some or all of the interest I'd generated up until that point as a penalty.With this in mind, Black said that sometimes it doesn't matter what the rate on the high-yield savings account is — it's the best place to park cash for easy access.Armed with this context, I still wanted to see if there were more ways to put my cash to work for me.Daniel Milan, financial advisor at Cornerstone Financial Services, had some more thoughts on CDs. A three-month CD could be a good option if I were comfortable locking up my money for that period of time, according to Milan.My bank didn't offer CDs, so I would need to open up a new bank account, which isn't necessarily a bad thing. Some financial experts recommend having <a target="_blank" class="" href="https://www.businessinsider.com/personal-finance/banking/how-many-savings-accounts-can-you-have">multiple bank accounts</a> for different savings goals. Searching online, I saw <a target="_blank" href="https://www.businessinsider.com/personal-finance/banking/best-3-month-cd-rates">multiple options</a> yielding over 4.6%.However, Milan didn't recommend locking up my money for longer. Usually, the longer the term of the CD, the higher the rate. But that's not always the case in today's market."In this current environment, it makes no sense to go further out than three months on a CD because the three-month CD is paying you more than a one-year or two-year right now," Milan said.Looking at CD offerings from a variety of banks, I discovered that this was indeed true — generally, the longer the CD duration, the lower the rate, especially after a 1-year duration. Rates on 6-month and 9-month CDs were also attractive depending on the bank, but again, my liquidity needs take those off the table.Many of the banks I looked at didn't offer short-term CDs, either. For example, one option offered a 4.5% APY on an 11-month CD, 3.7% on a 2-year, and 3.5% on a 5-year.It wouldn't make sense to move my money out of my savings account without high enough compensation for the lower liquidity."You're not getting paid for that illiquidity," Milan told me.Short-term <a target="_blank" href="https://markets.businessinsider.com/bonds">Treasury bills</a> are another investment option for higher yield, and they offer more liquidity than CDs, according to Richard McHorter, a private wealth advisor at SRM Private Wealth. A three-month Treasury bill currently yields 4.43%.There's also the added benefit of tax savings, which is especially appealing for McHorter, who lives in California: "If you're a resident of a high-income tax state, I would be looking at Treasury bills."As a resident of New York City, the idea of lower taxes certainly appeals to me. If I were to buy Treasury bills, I would only need to pay federal taxes, bypassing state and local income taxes.McHorter also said that there's a lot of uncertainty about interest rates right now, and they could actually start going back up again. Trump's proposed <a target="_blank" class="" href="https://www.businessinsider.com/trump-tariffs-hit-company-stock-profits-hardest-china-investing-manufacturing-2024-11">tariff policies</a> could increase inflation, in which case the Fed would probably increase rates to combat an overheating economy, he said.If I buy a three-month Treasury bill, I can reassess the inflation situation when I get my money back in three months and reinvest it accordingly, McHorter said.When it comes to interest rates and inflation, pay attention to the data and don't try to predict the market with your money, Milan advised. <a target="_blank" href="https://www.businessinsider.com/federal-reserve-cuts-interest-rates-quarter-point-powell-inflation-election-2024-11">Jerome Powell</a> himself has said that it's too soon to say how the election results could reshape markets and interest rates."My advice to anybody would be: just be diligent in reading and interpreting the data as it comes out," Milan said. Watch inflation data and Fed commentary, and base your investing decisions on the information you have at hand.It feels like the market is a bit in limbo as everyone waits for the effects of the election to ripple through, but as Black mentioned, not taking any action right now isn't the worst decision.What's next? For starters, I'm going to sit down and crunch some numbers for what three to six months of living expenses look like for me and keep that in my high-yield savings account. With the money I have left over, I have some good options.Are you a Gen-Zer who has recently been faced with an investing predicament? Feel free to reach out to Christine at <a target="_blank" href="mailto:cji@businessinsider.com">cji@businessinsider.com</a> to share your story.

The interest rate on my high-yield savings account keeps dropping. I asked 3 experts how to earn more on my cash.

<ul class="summary-list"><li>Tesla closed 22% higher on Thursday, its best day in years after posting strong earnings.</li><li>Analysts at JPMorgan caution that some of the automaker's growth drivers aren't sustainable.</li></ul>Tesla's earnings beat fueled a huge rally for the stock on Thursday, but JPMorgan is urging caution.Analysts at the bank said that while the <a target="_blank" href="https://www.businessinsider.com/tesla-stock-tsla-earnings-call-report-live-updates-2024-10?_gl=1*1b1iqo9*_ga*MTY3OTgyNjg0MS4xNzIxMDE2MDM2*_ga_E21CV80ZCZ*MTcyOTc3NDk1OC4zMDguMS4xNzI5Nzc1Nzk4LjYwLjAuMA..#wedbush-analyst-dan-ives-sticks-with-bullish-view-on-tesla-despite-recent-volatility?utm_medium=ingest&amp;utm_source=markets">strong earnings</a> should boost the stock in the short term, the automaker's growth drivers might not be sustainable in the coming quarters.The analysts correctly called the big reaction in the stock on Thursday post-earnings, with shares rising 22%, but they added that they see some caveats to the company's outlook. "However, we at the same time see several potentially unsustainable drivers of 3Q's better earnings and cash flow performance."The analysts pointed in particular to Tesla's near-record sales of regulatory credits. Tesla can sell credits it receives for producing electric cars to other companies that don't meet government emissions requirements.It's a hugely profitable business, and the credits generated $739 million for Tesla in the most recent quarter, the second-highest amount after the previous quarter's $890 million. While the credits are a huge profit driver in the near term, JPMorgan analysts said that won't last as other automakers introduce their own EVs and buy fewer credits from competitors like Tesla."Investors should be cautious about capitalizing the earnings generated from these (100% margin) credits, given that one of the tenets of the Tesla bull case is the large scale electrification of the automotive industry," the analysts wrote. "As other automakers broaden their electric offerings, they should over time be in a position to generate their own credits, negating and eventually eliminating the flow of competitor payments to Tesla."The analysts also pointed to large working capital benefits, which they say are unsustainable.Tesla saw a large beat on free cash flow in the most recent quarter, but that was in part due to a large increase in the amount due to its suppliers and other accrued liabilities, the analysts say.Tesla has only ever generated more cash from an increase in accounts payable in one other quarter, but at that time, deliveries and production both grew much faster, the analysts said. They wrote in the note that this suggests that this driver of the quarter's strong cash flow is unsustainable and possibly reversing."Automakers are expected to generate cash from working capital as sales rise, given timing differences arising from the favorable trade terms they enjoy with suppliers, but digging more deeply into the benefit, we note only in one quarter has Tesla ever generated more cash from an increase in accounts payable than it did in 3Q24," the analysts said.The automaker reported earnings per share of $0.62 for the third quarter, outpacing analysts' expectations of $0.51. Its operating profit came in at $2.7 billion, exceeding expectations of $2.0 billion and marking a 54% increase from a year ago. The company also announced that its Cybertruck <a target="_blank" href="https://www.businessinsider.com/tesla-cybertruck-profit-2024-10">has reached profitability</a>.JPMorgan rates Tesla "Underweight" with a December 2025 price target of $135 a share, 48% lower than its Thursday closing price of $260.48.

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